Nigerians decry cash scarcity in banks as CBN threatens sanction

Many Nigerians, including small business operators and residents of the Federal Capital Territory (FCT), have decried the scarcity of naira notes in banks for various transactions.

Over the past few days, bank customers have experienced difficulty trying to get cash from banks’ Automated Teller Machines (ATMs) and Point of Sale (POS) agents.

This has resulted in a hike in withdrawal charges by some of the POS operators.

A POS operator in the Mabushi area of Abuja, Mary Isaac, lamented that she spent more than five hours in the bank on Friday, November 29, 2024, trying to get cash.

Speaking on Sunday, Isaac said: “At the end, I only got little cash which was not adequate for business.

“For every transaction, the charge is from N200 and above and it will go higher this December.

“This is not our fault but the Central Bank of Nigeria (CBN) which has not put more cash in circulation.”

A businessman, Paul Uzor, who went to withdraw cash from a PoS agent, said he was charged N500 to withdraw N10,000.

Uzor said the extra charge was not fair to the masses, considering the harsh economic situation.

He called on the CBN to prevail on all Deposit Money Banks (DMBs) to make enough cash available, both in the ATMs and the banking halls.

CBN vows to sanction banks over cash scarcity at ATMs

Also speaking, a trader, Isah Abba, said the scarcity of cash was particularly hurting small business owners who rely on cash for their daily business transactions.

Abba told NAN: “We cannot run our business like this.

“Both businesses and customers do not have enough cash, and when we go to the POS, they also do not have cash.”

He urged the CBN to address the acute scarcity of cash before the festive season sets in.

Meanwhile, the CBN has threatened to impose fines on erring banks over scarcity of cash at the ATMs.

CBN Governor Olayemi Cardoso said this at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria in Lagos over the weekend.

Cardoso said the apex bank would be conducting spot checks across the DMBs and would impose sanctions on underperforming banks.

He urged customers to report any difficulties in accessing cash directly to the CBN for prompt action.

The CBN boss said: “We also recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians.

“To address this, we are conducting spot checks across the DMBs, and we will impose penalties on the underperforming institutions.

“Effective December 1, customers are encouraged to report any difficulties withdrawing cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.”

The Star